BDO Talks ERISA

Key Takeaways:

[2:35] A little bit about Michael and what he does for BDO Wealth Advisors.

[4:45] What’s new in ESG investing?

[6:40] Why is ESG important and how does it affect plan sponsors?

[7:00] In a recent report, 56% of plan participants discuss it is very important to have ESG alternatives available to them.

[7:45] Why is ESG different from other investment opportunities?

[10:10] ESG is growing in markets outside the U.S.

[12:25] What policies and procedures need to be in place to show that you’re following through on all the ESG requirements? This is still a bit of a gray area.

[14:35] The younger generation wants their core values expressed in their investment dollars.

[19:20] If you look at the marketing messages at investment firms, mutual funds, and investment advisors, ESG investing is at the forefront.

Resources:

BDO’s ERISA Center of Excellence

Beth on LinkedIn

Michael on LinkedIn

Email Questions and Comments to [email protected]

Quotes from the Episode:

“The enactment in 2021 — the legislature really was written to try and clear up some of the confusion about what a fiduciary requirement was in terms of including ESG investing in portfolio options and what was the standard for plan sponsors.”

“ESG — what it’s trying to do is bring social governance to the investing world and allow people to make money and grow their assets for retirement, but also to put their core values into play.”

“What’s important to the parent’s generation may not necessarily be the same for the younger generation, and there’s a push to have their core values expressed in their investment dollars.”

Key Takeaways:

[1:35] Let’s talk about the SECURE Act and its long-term, part-time (LTPT) employees.

[2:30] A little bit about Norma and her background.

[3:45] Norma shares how the SECURE Act was created and why it’s important.

[5:40] When do employees join the tax-qualified plans?

[6:00] The new LTPT employee rule means it’s mandatory for plan sponsors.

[8:25] Why is this rule important and why did the government decide to introduce it?

[11:55] Do you have to give LTPT an employer match?

[13:10] How can employers best track this process and who would qualify under this new act?

[14:00] This new obligation doesn’t take effect until January 1st, 2024, but here’s why you want to start now.

[17:35] Is there an easy way out of all of this?

[20:00] Are you an employer in Oregon, California, Illinois, and Connecticut? You want to listen in.

Resources:

BDO’s ERISA Center of Excellence

Beth on LinkedIn

Norma on LinkedIn

Email Questions and Comments to [email protected]

Quotes from the Episode:

“This new obligation doesn’t take effect until January 1st, 2024. You have to track if they had 500 hours of service over three consecutive 12-month periods and those kickoffs start January 1st, 2021. You could do nothing and wait and then go back and recreate all your records.”

“Already there are a number of states; Oregon, California, Illinois, Connecticut, have already set up mandatory programs. If you’re an employer in those states and you don’t have a 401(k) program, you have to participate with the state-run paycheck deduction IRA.”

“The states that couldn’t wait for the federal solution are out there already trying to help people save through workplace retirement saving plans.”

Key Takeaways:

[2:35] There’s a new auditing standard out!

[3:15] Erin shares a little bit about herself and her career path.

[6:00] Beth gives a quick brief on SAS-136.

[7:30] Joanne breaks down the “Forming an Opinion and Reporting on Financial Statements” standard.

[8:15] What plans does this auditing standard apply to?

[8:40] How can you check if your plan is subject to ERISA or not?

[9:00] Why did the auditing industry have to shake things up and outline a new name for a limited scope audit?

[10:30] Limited scope audit is now being renamed to the ERISA Section 103(a)(3)(C) audit.

[11:05] What kind of changes do plans sponsors need to be aware of?

[12:00] What are some of the preconditions in regard to this audit?

[14:35] Every auditor will have to adopt this standard by Dec 21st, 2022.

[16:45] Auditors are really going to have to open up additional conversations with plan sponsors and those charged with governance.

[17:45] Still think it’s a limited scope audit with a name change? Think again.

[19:50] Stay tuned - there will be more information on this topic to come at BDO ERISA!

Resources:

BDO’s ERISA Center of Excellence

Beth on LinkedIn

Erin on LinkedIn

AICPA.org

Email Questions and Comments to [email protected]

Quotes from the Episode:

“From your audit teams, you should expect communication about the standard during your kick-off meeting and there are some pre-conditions that need to be met before we can perform the ERISA Section 103(a)(3)(C) audit.”

“Plan management might not take this seriously and still think it’s a limited scope audit and nothing really has changed. I don’t think that’s what the standard wants it to be.”

Key Takeaways:

[1:10] What is the goal of BDO’S ERISA Center of Excellence?

[2:00] Luanne shares her story and some of her responsibilities at BDO.

[2:45] Our co-host Joanne, shares a little bit about herself.

[3:35] We want to hear from you! Reach out and let us know what topics you’re interested in!

[3:45] Beth introduces herself and shares a little bit about where she’s from.

[5:15] To jump into today’s topic, plan sponsors are fatigued by talk of COVID-19.

[5:55] Now more than ever, we will see an increase in mental health offerings.

[8:15] How we visit the doctor is going to completely change.

[8:55] NFL draft was conducted remotely!

[10:00] Communication is going to be key when it comes to re-engaging all employees.

[12:50] Cybersecurity and protecting personal employee data is going to be a main concern for employers.

[13:50] Plan sponsors need to keep informed on security topics.

[15:20] There’s a huge delay when sending out documents via snail mail.

[16:25] Companies are still sending sensitive information through regular email.

[16:55] A quick update about taxes, COVID-19, and what the IRS recently announced.

Resources:

BDO’s ERISA Center of Excellence

Beth on LinkedIn

Luanne on LinkedIn

Email Questions and Comments to [email protected]

Quotes from the Episode:

“Our HR professionals need to take a look at what their employees are doing and ongoing changes to with their benefits. . . Communication is going to be key to re-engaging all employees.”

“Retirement is such a huge topic that individuals still need to consider a way to plan for. Time seems to vanish when you think about compounding interest and what you’re going to do.”

“Everyone who owns a computer should be concerned about cybersecurity.”